The euro marks its 26th year amid economic challenges, with fluctuating value and new digital currency developments shaping its future across Europe and the global market.
The euro, now in its 26th year, faces challenging economic conditions in the eurozone.
Introduced in 1999 as a dematerialized currency for accounting and electronic payments, it became physical currency in 2002, used daily by 350 million people in 20 EU member states. The European Central Bank (ECB) oversees the monetary policy, aiming to control inflation below 2% by adjusting interest rates.
The euro, the world's second most significant currency after the US dollar, circulates in seven banknote denominations and various coins. The €500 note was discontinued in 2019 due to concerns over money laundering and terrorism.
While all EU countries, except Denmark, are required to adopt the euro if eligible, Croatia joined the eurozone in 2023, and Bulgaria is expected to follow.
The euro's value has fluctuated since its launch. After a drop to $0.83 in 2000, it reached $1.60 in 2008, but geopolitical tensions and global crises led to a 16% depreciation against the dollar in 2022.
Despite recovery in 2023, the euro faced pressure from various factors, including Donald Trump’s election win, and ended 2024 at $1.04, near the $1 parity last seen in the early 2000s.
Globally, the euro’s role has diminished, accounting for 19.76% of global reserves in 2024, down from 25% in 2003. Its share in global payments also declined to 22.9% by October 2024.
In response to changing financial landscapes, the ECB is developing a digital euro, expected to complement traditional currency and be available for public use. With a regulatory framework being established, a draft rulebook is anticipated in early 2025, offering a reliable and stable digital payment option across Europe.
UK Prime Minister Keir Starmer is nearing a defence deal with the EU to reset post-Brexit ties, even as his government courts a U.S. trade deal. Talks will culminate at a May summit, aiming to boost cooperation in defence, energy, and youth mobility.
Apple and Meta have been fined €500 million and €200 million respectively by the European Union for breaching the bloc’s new Digital Markets Act, escalating tensions in the transatlantic tech trade dispute.
Hungary’s persistent attempts to undermine EU efforts in support of Ukraine have pushed member states to seriously consider invoking Article 7 of the EU treaty — the bloc’s most severe disciplinary tool, which could strip Budapest of its voting rights, The Guardian reports.
Talks in Paris between U.S. officials and European leaders have kickstarted a new diplomatic format aimed at shaping Ukraine's post-war future, with the involvement of Europe’s three most powerful countries.
Greece has submitted its long-awaited maritime spatial plan to the European Union, outlining how it will organize various maritime activities such as fishing, tourism, offshore energy, and more.
Indonesia is pressing for a “fair and square” trade deal with Washington, senior ministers said, as Jakarta hustles to head off a 32 % U.S. tariff by offering to boost American imports by up to $19 billion while safeguarding its own economic interests.
Brazil's Supreme Court has ordered the arrest of former President Fernando Collor de Mello after rejecting his appeals against a corruption conviction, with a ruling from 2023 sentencing him to nearly nine years in prison for money laundering and bribery.
The U.S. military said a missile explosion that killed at least a dozen people near a UNESCO site in Yemen's capital, Sanaa, was caused by a Houthi-fired weapon, not an American airstrike, countering local claims and intensifying scrutiny over the rising civilian toll in the conflict.
The United States is set to host an energy summit in Alaska in early June, where President Donald Trump’s administration hopes Japan and South Korea will commit to the $44 billion Alaska LNG project, a major energy initiative aimed at expanding U.S. gas exports to Asia.
A large-scale missile and drone strike hit Kyiv overnight, killing at least 12 people in what Ukrainian officials called the most significant attack on the capital this year, as diplomatic efforts to reach a resolution continue.
China has rolled out the world’s first 10-gigabit (10G) fixed broadband network in Xiong'an New Area, promising ultra-fast speeds and low latency through cutting-edge optical infrastructure.
The Holy Fire ceremony stands as one of Christianity's most enduring and mysterious rituals, drawing thousands of pilgrims to Jerusalem each year.
Pope Francis's relationship with Azerbaijan has evolved significantly over the years, characterized by diplomatic exchanges, promotion of religious tolerance, and peace advocacy in the Caucasus region.
Russia launched a major missile and drone assault on Kyiv overnight on April 24, killing at least twelve people and injuring 90, including children and a pregnant woman, according to Mayor Vitali Klitschko.
China’s pivot away from U.S. liquefied petroleum gas under new tariffs is shaking global energy flows, slashing demand, and fuelling a scramble for alternatives across Asia, with Middle Eastern suppliers and rival buyers seizing the moment.
Uzbekistan and Iran have agreed to establish a Joint Business Council aimed at fostering development of business ties and facilitating the resolution of issues between entrepreneurs from both countries.
Brussels has fined Apple and Meta over €700 million combined, launching its first crackdown under the Digital Markets Act aimed at curbing big tech’s power and boosting competition in the digital economy.
The Trump administration is considering reducing tariffs on Chinese imports, aiming to ease tensions with Beijing as trade negotiations continue, a source familiar with the matter said on Wednesday.
Iran informed China on Wednesday about ongoing nuclear negotiations with the US, expressing a commitment to diplomacy despite past setbacks and urging stronger bilateral cooperation under their 25-year strategic agreement.
Nissan plans to invest an extra $1.4 billion in China by 2026 as it launches 10 new energy vehicles, aiming to recover from declining sales and catch up with faster-moving local competitors.
Indonesia is pressing for a “fair and square” trade deal with Washington, senior ministers said, as Jakarta hustles to head off a 32 % U.S. tariff by offering to boost American imports by up to $19 billion while safeguarding its own economic interests.
Brazil's Supreme Court has ordered the arrest of former President Fernando Collor de Mello after rejecting his appeals against a corruption conviction, with a ruling from 2023 sentencing him to nearly nine years in prison for money laundering and bribery.
The U.S. military said a missile explosion that killed at least a dozen people near a UNESCO site in Yemen's capital, Sanaa, was caused by a Houthi-fired weapon, not an American airstrike, countering local claims and intensifying scrutiny over the rising civilian toll in the conflict.
The United States is set to host an energy summit in Alaska in early June, where President Donald Trump’s administration hopes Japan and South Korea will commit to the $44 billion Alaska LNG project, a major energy initiative aimed at expanding U.S. gas exports to Asia.
A large-scale missile and drone strike hit Kyiv overnight, killing at least 12 people in what Ukrainian officials called the most significant attack on the capital this year, as diplomatic efforts to reach a resolution continue.
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